Abstract

Purpose: In a competitive and constituently changing global business environment, it is almost  impossible  for  organizations  to  avoid  crises  of  various  types  and  magnitude.  The objective of this study is to display relationships between perception of crisis awareness, crisis readiness and the organizations` actual crisis management initiatives against major industrial crises. This thesis also aims to clarify if the perception of crisis-awareness and crisis-readiness could be affected by other factors that should be in considerations, which in turn could affect the outcomes of crisis-management initiatives and actions in industrial organizations.

Methodology:  By  way  of  introduction,  the  problem,  which  is  related  to  the  industrial crises and proactive crisis-management and which also refers to the core topic of the study was formulated and discussed. Research questions about “How the employee’s perception of crisis- awareness  and  crisis-readiness  affects  the  outcomes  of  an  organization's  crisis-management initiatives?”  and “How  top  managements  could  affect  the  employee’s  perception  of  crisis- awareness and crisis-readiness positively toward PCM in their organization?” were identified. The  covering  and  important  data  was  collected  through  scientific  literatures  and  articles  and was presented in the theory part. Collected data and empirical findings from the world’s two largest automaker namely, Volkswagen and Toyota, whom has been involved in scandals and crises related to core research of this paper. Empirical findings has been analyzed and finally the answer to the research questions were proposed.

Findings: The result of the research indicates that the perception of crisis awareness and crisis  readiness  in  organization  have  a  direct  impact  on  the  organizations  crisis  management initiatives  and  activities  and  also  there  are  elements  like Corporate  Culture,  Personnel Education in Crisis Management and Corporate Communication and also other factors, which would affect the perceptions in organizations.

Implication:  The  study  suggest  that  by  effective  use  of  elements  presented  here, organizations could influence employees crisis awareness and crisis readiness positively, thus strengthening the organizations crisis management capacities.